Movitz v. First National Bank of Chicago

982 F. Supp. 571, 39 Fed. R. Serv. 3d 1311, 1997 U.S. Dist. LEXIS 16965, 1997 WL 680781
District Court, N.D. Illinois·Decided October 23, 1997·No. 86 C 2696·Published·Cited by 8 cases

Opinion

OPINION AND ORDER

NORGLE, District Judge.

Before the court is Plaintiffs’ Bill of Costs pursuant to 28 U.S.C. § 1920 and Federal Rule of Civil Procedure 54(d). For the following reasons, Plaintiffs’ costs are granted in part.

I. BACKGROUND

In December 1980, the Defendant acquired Corporate Atrium I, an office building in Houston, Texas, and managed it until May 1984 on behalf of the Plaintiffs. Allegedly, after learning of the Defendant’s mismanagement of the building, the Plaintiffs terminated the Defendant. Chase Manhattan took over the management responsibilities. In late 1985, the Plaintiffs were advised that at least another $1,000,000 would be needed to salvage their investment. Rather than invest further capital, the Plaintiffs decided to allow the mortgage holder, to foreclose on the building.

In May 1986, the Plaintiffs filed a complaint, alleging breach of fiduciary duty, common law negligence, and breach of contract. On March 27,1997, a jury returned a general verdict in favor of the Plaintiffs, and against the Defendant, in the amount of $3,284,665. The Plaintiffs now seek $154,640.76 in costs. The Defendant objects and submits that the court should only award $14,092.69 to the Plaintiffs in costs.

II. DISCUSSION

Under Federal Rule of Civil Procedure 54(d), “costs other than attorneys’ fees shall be allowed as of course to the prevailing party unless the court otherwise directs.” In order to award costs, however, the court must have specific statutory authority. See Barber v. Ruth, 7 F.3d 636, 644 (7th Cir.1993) (citing Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437, 440-41, 107 S.Ct. 2494, 2497, 96 L.Ed.2d 385 (1987)).

28 U.S.C. § 1920 (1994) specifies many of the costs that may be recovered pursuant to Rule 54(d). Id. at 644. Section 1920 allows the following costs:

(1) Fees of the clerk and marshal;
(2) Fees of the court reporter for all or any' part of the stenographic transcript necessarily obtained for use in the case;
(3) Fees and disbursements for printing and witnesses;
(4) Fees for exemplification and copies of papers necessarily obtained for use in the case;
(5) Docket fees under section 1923 of this title; [and]
(6) Compensation of court appointed experts, compensation of interpreters, and salaries, fees, expenses, and costs of special interpretation services under section 1828 of this title.

28 U.S.C. § 1920. These costs are presumptively awarded to the prevailing party. See FASA Corp, v. Playmates Toys, Inc., 108 F.3d 140, 144 (7th Cir.1997). The losing party has the burden of affirmatively demonstrating that the prevailing party is not entitled to certain costs. Id.; see also Truck Components Inc. v. Beatrice Co., No. 94 C 3228, 1996 WL 402520, at * 1 (N.D.Ill. July 15, 1996).

The Plaintiffs seek to recover the following costs:

Fees of the Clerk $ 60.00
Fees for service of summons and subpoenas $ 849.25
Fees of the court reporter $58,986.45
Fees for witnesses $ 9,693.96
Fees for exemplification and copies of papers $55,882.37
Fees for Defendant’s experts $28,290.00
Fees for long-distance calls $ 878.73

*574 The court will address each expense to determine (1) whether the Plaintiffs’ expenses are allowable cost items under § 1920 and (2) whether the amounts are reasonable and necessary. See Deimer v. Cincinnati Sub-Zero Prod., Inc., 58 F.3d 341, 345 (7th Cir.1995); see also Cannella v. Anodyne Corp., No. 95 C 1012, 1997 WL 573398, at *7 (N.D.Ill. Sept.11, 1997).

1. Fees of the Clerk

The Defendant has no objection to the Plaintiffs’ fees of the clerk. As such, the court awards $60.00 as reasonable and necessary costs under § 1920(1).

2. Fees for Service of Summons and Subpoenas

The Plaintiffs seek $849.25 for fees for service of summons and subpoenas. 1 The Defendant objects to the entire amount. Although the Defendant agrees that such fees are allowable under § 1920(1), see Collins, 96 F.3d at 1060, the Defendant argues that the amounts sought are not reasonable or necessary because 19 of the 21 persons or entities subpoenaed did not provide testimony at trial. As for the two remaining persons, the Defendant argues that trial subpoenas were not necessary because the Defendant was willing to voluntarily produce its present and former employees at trial.

In order to award costs for service of subpoenas, the court need only determine whether the subpoenas were reasonable and necessary when served in light of the facts known at the time of service. See Cannella, 1997 WL 573398, at *18; see also Shea v. Galaxie Lumber & Constr. Co., No. 94 C 0906, 1997 WL 51655, at *8 (N.D.Ill. Feb. 5, 1997) (Costs for service of subpoenas are “recoverable even if the witnesses do not testify at trial; the relevant question is whether the plaintiff ‘reasonable believed ... that the testimony would be helpful.’ ”).

It appears from the Plaintiffs’ Bill of Costs that 17 out of 21 persons or entities were subpoenaed to either testify at a deposition or to produce documents. The remaining four persons were subpoenaed to testify at trial; only two of these persons actually testified at trial. In order to show that the subpoenas were unreasonable or unnecessary, the Defendant must offer some evidence to show that it was unreasonable for the Plaintiffs to believe that the documents or the testimony were necessary at the time sought. Cf. Cannella, 1997 WL 573398, at * 18. The Defendant does not do so.

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Movitz v. First National Bank of Chicago, 982 F. Supp. 571, 39 Fed. R. Serv. 3d 1311, 1997 U.S. Dist. LEXIS 16965, 1997 WL 680781 (N.D. Ill. 1997).

982 F. Supp. 571 (Movitz v. First National Bank of Chicago) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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